Entain has acquired Unikrn, so can we expect more esports betting acquisitions? – esports betting
The convergence of online betting and esports marks a significant evolution in both industries. Recent acquisitions highlight a trend towards merging these sectors, indicating a future where they operate as one cohesive entity.
Inside Entain’s Acquisition of Unikrn
Entain, a global leader in sports betting and interactive entertainment, has recently finalized the acquisition of esports betting platform Unikrn for approximately £50 million ($68.9 million). This strategic move encompasses Unikrn’s advanced technology platform, innovative products, and dedicated team. Justin Dellario, previously the VP of Content and Esports for Twitch, will spearhead Entain’s esports initiatives.
According to Entain’s projections, the esports wagering and social casino markets could provide an additional $20 billion or more in addressable markets by 2025. The company’s vision includes developing the “first scalable platform” that addresses the burgeoning market of skill-based esports wagering.
Earlier in the fiscal year, Unikrn entered into a partnership with FYX Gaming, focusing on blockchain-based gaming products and monetization strategies. The continuation of this partnership under Entain’s ownership remains uncertain; however, the integration of blockchain technology and NFTs is becoming increasingly pivotal for engagement within the esports sector.
Reasons Behind the Growing Trend of Esports Betting Acquisitions
Such acquisitions indicate a notable trend where traditional bookmakers recognize the lucrative opportunities within esports. For instance, BetMGM’s recent offer to purchase Entain for $11 billion was declined, citing an undervalued proposition.
In March, Bally’s Corporation made headlines with its proposed acquisition of Allied Esports Entertainment, Inc. for approximately $100 million. Allied Esports operates the HyperX Esports Arena, a premier venue located within the Luxor Resort and Casino in Las Vegas.
The momentum of acquisitions flows both ways; for example, Esports Entertainment Group (EEG) has acquired the B2C sports betting and online casino operator Bethard from its parent company, Gameday Group, involving a €16 million ($18.9 million) cash transaction alongside a 12% share of net gaming revenue over two years. Notably, Bethard reported $31 million (£22.4 million) in revenue for 2020.
As U.S. states increasingly authorize esports as a valid category for online wagering, expect to see intensified acquisition pursuits among both traditional and esports-focused betting firms.
Potential Barriers to Further Esports Betting Acquisitions
While acquiring an esports betting operation may appear advantageous, not all industry players share this perspective. Some operators believe that fostering collaborations may present more benefits than direct competition.
For instance, Betway recently established a two-year alliance with Berlin-based G2 Esports, focusing on a series of fan-centric initiatives such as co-creating show matches, live streams, and various promotional activities that enhance community engagement.
Moreover, igaming companies, like mobile casino operator Leo Vegas, are actively integrating esports into their offerings. Earlier this year, Leo Vegas partnered with esports data and tech company Abios to incorporate widgets across its platforms, including bet.uk and bet21. Notably, Abios was acquired by Kambi just last month.
While we can expect to see more acquisitions akin to that of Entain and Unikrn, there are numerous strategies for integrating esports within gambling frameworks that do not necessitate an outright purchase.
